The firm's preferred stock pays an annual dividend of $5.40, and the stock sells for $70. Flotation costs of preferred stock was 10% of the stock value.

The firm's common stock is selling for $70. The dividend paid was $3.20. Dividends are expected to grow at 7%. If the firm issue new stocks a 8% of the selling price will be charged as selling costs.

Bonds yield to maturity is 14% The firm marginal tax rate is 32%

Calculate the Marginal Average Cost of Capital if new common stocks are issued and the optimal capital structure is 50% debt, 20% Preferred Stocks and 30% Common equity